Asian shares tentative, dollar shines on Fed outlook

Tokyo: Asian share markets were cautious today as another bomb scare in Europe days after the deadly Paris attacks left investors in a contemplative mood giving a boost to safe haven US bonds and the dollar.

Wall Street shares ceded earlier gains to end almost flat yesterday after German authorities called off a soccer game which German Chancellor Angel Merkel was due to attend, citing threats of bombing, sparking fears of another attack coming only days after the deadly assault in Paris.

"Coming less than a week after the incident in Paris, it would be a natural reaction, even though consensus seems to be growing earlier that the impact of the terror attack would be limited," said Hirokazu Kabeya, Chief Global Strategist at Daiwa Securities.

"Markets are likely to be going back and forth for now," he added.

U.S. Treasuries also bounced back on safety bids, with the 10 year yield slipping to 2.273 percent from day's high of 2.313 percent.

Earlier yesterday, US economic data affirmed a solid economic picture, supporting the case for the Federal Reserve to raise interest rates in December.

US consumer prices increased in October from the previous month after two straight months of declines, putting annual core inflation at 1.9 percent.